Paraguay - Digital Nomad Residency Journey (2020) |

Part I. Arrival

**UPDATE** Watch THIS video about a summary arriving and getting a residency in Paraguay!

Why Paraguay?

Despite being right in the centre of the continent, Paraguay is one of the least visited countries in South America. Getting there is not the easiest, and airfares are expensive because few airlines fly to this destination. The question we heard too often was: “Why Paraguay???” Entering the country was the result of a lot of careful planning and waiting.

While reading various Digital Nomad websites, I realized we might face residency issues soon, particularly regarding where to pay taxes as permanent travelers. I wanted to be proactive and back up our lifestyle with a solid residency, avoiding taxation in my country of citizenship (Hungary). I researched the residency and taxation systems of Panama, Georgia, Malta, Andorra, and Paraguay. Paraguay looked like the best option, but I needed more information. That’s when I found fellow Hungarian traveler Bence Zakonyi online, who has videos on YouTube and a website about residency schemes, especially Paraguay.

Bence’s passion for Paraguay made me curious. Why is this country so good? We had a one-hour consultation, and he recommended Paraguay as the best option for us. We already had an Estonian company through Estonian e-residency—which I am extremely satisfied with—and wanted to keep it. However, this e-residency works best for those who are not European residents. Being a resident of another EU country, such as Hungary, can bring tax complications, including double taxation treaties and needing to register your company in your home country. For Europeans, permanent residency outside the EU can help avoid these issues.

Note: I plan to dedicate a separate post on Estonian e-residency + Hungarian residency and what to expect. My investigation with an international tax advisor revealed a scary scenario if I kept my Estonian company as a Hungarian resident. If you are an EU resident interested in Estonian e-residency, consult an international tax advisor first. I did not, so I needed to fix this later.

Planning the Trip

Bence sent brochures on Panama and Paraguay residency schemes and a list of requirements in February 2020. On March 10th, we bought flight tickets to Paraguay, departing mid-April. Unfortunately, due to Covid, our flight was canceled on March 13th. Paraguay entered lockdown for several months. In September, residents were allowed to travel back. By September-October, we had translations ready, a new passport, yellow fever vaccination, and were prepared to travel again once borders reopened.

Arrival at Foz do Iguaçu

Continuing from our previous Brazilian adventures, we landed at Foz do Iguaçu International Airport, near the Brazilian-Paraguayan border. Upon arrival, we completed the online entry form required for Paraguay. It was user-friendly but not mobile-optimized, so we used my laptop. Filling the form took about 5 minutes, generating a QR code. With a screenshot of this code, we were ready to leave the airport!

A taxi station was right at the exit. The driver spoke English well and was very friendly. For 150 Brazilian Real (~30 USD), he agreed to take us through the border directly to the Paraguayan bus station. The night before in Sao Paulo, I had booked bus tickets online via Plataforma10. We chose NUESTRA SEÑORA DE LA ASUNCIÓN PY (NSA), with a Ciudad del Este–Asuncion trip costing 95,000 Paraguayan Guarani (~15 USD).

During the ride, we had a pleasant chat with our driver, Lucas, who frequently drives through this border and even offered to assist us with officers. Brazilian border exit went smoothly, and Paraguay entry was easy with the QR code and passports. If you need a reliable taxi near Iguazu and the Brazilian-Paraguayan border, I recommend Lucas. Contact me via the site, and I can share his info.

Bus Journey to Asuncion

At the bus station, we waited in a modern VIP lounge with toilets, TV, and air conditioning. Our 2 PM bus was a new double-decker, extremely comfortable, with large legroom, leg rests, air conditioning, and screens showing movies. The six-hour trip was surprisingly enjoyable. On the roadside, locals sell Chipa, a staple bread made from cassava flour, lard, and anise. The bus stopped, and a few bakers hopped on, selling fresh warm Chipa. The smell was irresistible; we bought a few, admitting they weren’t very Vegan. During our stay, Chipa was the only non-vegan temptation we gave in to on coach trips.

Arrival in Asuncion

We reached Asuncion bus station at 8 PM. A new friend, Toto, was waiting for us. I met him through Facebook and an expat group; he is among the few Paraguayans who speak English and Hungarian (maybe the only one!). He offered to drive us to our accommodation, which we gladly accepted. What a week! On Tuesday, we were in Brazil, preparing for the trip. On Saturday, we were now in a car traveling through Paraguay’s capital. Tired and hungry, we planned to order pizza upon arrival. Check-in at our Air B&B, booked a month prior, was smooth. Suddenly, the nice evening turned into a disaster movie scene.

First Storm Night

Walking from the car to the building with luggage, a STRONG wind suddenly forced me to kneel. On hands and knees, we struggled forward, fearing we’d be blown away. Reaching the third-floor flat, we heard the wind’s roar, unlike anything we had experienced. Soon, the power went out, lasting a full 24 hours. We asked Toto if such storms are normal; he said these hurricane-type winds usually occur once a year. We were “lucky” to experience the strongest storm of the year on our first night. Heavy rain and wind lasted all night; venturing out for food was impossible. Hungry and tired, we went to bed.

First morning in Asuncion, after the storm.

Sunday Morning Adventure

The next morning, I went out looking for a grocery store. We had no phone signal, internet, or map. Walking on a wide road, I hoped to find an open store nearby. Fifteen minutes later, I saw mangoes on the ground and storm damage to the trees. It was 8 AM on a Sunday, with no people around. Walking there alone, not knowing the area, and having just enough cash for breakfast, I realized how dependent we are on mobile internet.

Surprisingly, I enjoyed this sudden adventure. Superseis was open, and I could buy basic breakfast items, paying by card. Feeling celebratory, I even took a bottle of whisky to the cashier. The surprise came when the card no longer worked—we only had enough cash to pay. Lunch and whisky in hand, but no cash and a blocked debit card. A rookie mistake Bear Grylls wouldn’t approve, lol.

In the afternoon, I spent two hours searching for a working ATM. Generators had failed, and all ATMs were offline in the neighborhood. I returned to the apartment disappointed, hoping Monday would restore normalcy. Sunday evening was spent in the dark, but thankfully, our Amazon Kindle allowed us to read without lights.

Resolving Early Issues

On Monday, power was restored. Grocery shopping with the card resumed—happy days! On Tuesday, we met Bence, who helped us get a local SIM card (Claro) and withdraw a larger cash amount using our Wise card from a downtown ATM. Note: Telekom Hungary offers a Worldwide travel package, but Paraguay is excluded. A local SIM is better for visiting here.

Back on track, we had accommodation, food, cash, electricity, and internet. The government removed the 14-day quarantine requirement, so we didn’t have to isolate. Mid-November summer brought sunshine and pool time, quickly erasing the travel struggle. Days in Asuncion were enjoyable, despite early hardships. A new adventure awaited: obtaining residency and settling down, which I’ll share in Part II.